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Hedge Fund Industry Trims 2022 Losses with 3.46% Gain in November

Nearly All Hedge Fund Subsectors Ride a Bullish Wave to November Profits


The hedge fund industry was up 3.46% in November, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. Many funds rode the swell of bullish sentiment in both equity and fixed income markets that continued throughout November.

The S&P 500 Total Return Index advanced 5.59% during the month while the S&P Global Developed Bond Index was up 4.73%.

The hedge fund industry also continued whittling down its year-to-date losses in November, finishing the month down -6.51% for the year to date. The hedge fund industry continued to better the year-to-date performance of the S&P 500 Total Return Index, which remained down -13.10% over the year-to-date period.

The overwhelming majority of hedge fund subsectors gained ground in November. The Emerging Markets Global Equities Index enjoyed the largest pop, jumping 11.18% for the month. Not far behind it was the Emerging Markets Asian Equities Index, up 10.47%. Elsewhere, the Emerging Markets Asia Index advanced 8.93%; the Emerging Markets Global Index returned 8.71%; and the Emerging Markets Index gained 8.21%. The Technology Index and the Emerging Markets Sub-Saharan Africa Index both enjoyed solid returns of 4.65% and 4.52%, respectively.

Hedge fund subsectors posting losses in November included the Distressed Securities Index, down -2.18%; the Emerging Markets Latin American Equities Index, off -0.34%; and the Merger Arbitrage Index, retreating -0.41%.

Contrary to November’s mostly positive performances, the preponderance of hedge fund subsectors remained underwater for the year. Chief among those bucking this trend were the Global Macro Index which is up 8.27% for 2022. The Emerging Markets Latin American Equities Index and the Emerging Markets Latin American Index are hot on Global Macro’s heels, however, sitting on 7.55% and 6.22% returns, respectively. The Equity Market Neutral Index is up 3.04%, and the European Equities Index has cobbled together a 1.93% compounded return through November.

Among the larger group of subsectors losing ground in 2022, the Emerging Markets Eastern European Equities Index was the deepest in the red with losses of -32.64%. The Technology Index has receded -19.49%; the Emerging Markets Asian Equities Index is off -17.13%; the Emerging Market Asia Index was down -15.79%; and the Healthcare & Biotechnology Index dropped -15.37%.

“Developed, developing and emerging markets all savored rallies in November which reached across many asset classes and drove gains for almost all hedge fund subsectors,” observed Ben Crawford, Head of Research at BarclayHedge. “November’s action reflected a measure of optimism from investors betting that markets had finally hit their bottom. This mood was bolstered by fresh data that hinted U.S. inflation might finally be ebbing, dangling the tantalizing possibility of slower and smaller interest rate hikes.”

For a complete table of BarclayHedge Hedge Fund and Sub-Index results for November, as well as historical returns, click here.


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Malea Lydon

BackBay Communications